The Warm Homes Loan Scheme is available to eligible homeowners in Scotland who want to finance home energy improvements. This guide explains what it covers and how to enquire about an installation with HeatCo.
We install solar panels and battery storage across Scotland, as well as heat pumps. We can help arrange finance through a participating lender, subject to its requirements. For heat pumps, separate Scottish funding may also be available.
HeatCo Scotland Ltd acts as a credit broker, not a lender.
What Is the Warm Homes Loan Scheme?
The UK government announced the programme in October 2026. Government funding helps reduce the cost of borrowing for eligible installations through participating lenders. Each lender sets its own products and assesses applications.
You borrow from a finance provider rather than the government. You must repay the loan, including any interest and charges set out in your agreement.
You can read about the full programme in the government’s Warm Homes Loan Scheme factsheet. Not every lender or installer offers finance for every technology listed there.
Who Can Apply in Scotland?
You must own the residential property being improved, either outright or with a mortgage. The scheme includes owner-occupiers and private landlords, but individual lenders can set further restrictions.
The official eligibility guidance explains the basic requirements. Your lender will also check your circumstances and whether you can afford the repayments.
The work must meet the relevant installation standards. For solar panels, batteries and heat pumps, this includes the appropriate Microgeneration Certification Scheme (MCS) certification for the installer and products.
Which Home Improvements Can It Fund?
The programme covers solar photovoltaic panels and electrical battery storage, as well as eligible heat pumps. Other specified renewable technologies and heat network connections are included in the wider scheme.
Solar panels generate electricity during daylight. A battery lets you keep surplus generation from a compatible system for use later, when you need it. You can consider both as part of the same project.
Heat pumps provide heating using energy drawn from the surrounding environment. Eligibility depends on the type of system and the lender’s product, so the general term ‘heat pump’ does not mean every installation qualifies.
The government factsheet gives the following maximum loan amounts for the technologies most relevant to HeatCo’s customers:
| Improvement | Government Scheme Maximum |
| Solar panels | £15,000 |
| Electrical battery storage | £15,000 |
| Air-to-water heat pump | £20,000 |
These are the government’s limits for the wider scheme. The amount available for your installation depends on the lender’s product and assessment. The factsheet also covers other technologies with different limits.
How HeatCo Can Help with Your Installation
We work with homeowners across Scotland, starting with a survey to understand the property and the installation you have in mind.
For solar panel installations, we assess the property and quote for a system to suit your home. If you are also considering battery storage, we can include it in the same survey and quotation. This lets you consider the installation as a whole before deciding what to go ahead with.
Our heat pump installation service starts with checking whether the proposed system is suitable for your home. We will explain the work needed and prepare a quotation. The Home Energy Scotland funding information below may also be relevant to your plans.
You deal with HeatCo from the survey through to installation. We can help arrange finance through a participating lender for eligible work under the Warm Homes Loan Scheme.
We start with a survey and installation quotation. If you are interested in finance, we can explain the available options and help arrange your application. You will receive the interest rate, repayment schedule and total amount payable before deciding whether to accept a loan.
Representative Example Borrow £10,000 over 120 months at 4.6% APR. 120 monthly payments of £103.67. Total amount repayable £12,440.40.
The annual interest rate is fixed at 4.51%. The 4.6% APR shown above is representative.
HeatCo Scotland Ltd is a credit broker, not a lender. Finance is subject to the lender’s eligibility requirements and credit and affordability checks.
What About Home Energy Scotland Funding?
If you are considering a heat pump, check the separate Home Energy Scotland Grant and Loan before deciding how to pay. Eligible homeowners may be able to get a grant and an optional interest-free loan. Conditions apply and funding is subject to availability.
A Home Energy Scotland heat pump grant may be used alongside a Warm Homes loan for the remaining eligible cost. You cannot fund the same costs twice. Check the conditions with Home Energy Scotland and the lender, and obtain any required written funding offer before work starts.
Warm Homes Loan Scheme FAQs
Is the Warm Homes Loan Scheme a Grant?
No. You must repay the money you borrow under the terms of your credit agreement. Government support for the scheme does not pay off your loan.
Is This the Same as Warmer Homes Scotland?
No. Warmer Homes Scotland is a separate Scottish Government programme that helps eligible households with home energy improvements. It has its own household and property requirements, and applications are handled through Home Energy Scotland. It is not the finance offer described here.
Are All Warm Homes Loans Interest-Free?
No. Offers differ between lenders, and the finance available through HeatCo charges interest. Check your finance quotation for the applicable rate and full repayment details before deciding.
Can I Apply for Solar Panels and Battery Storage Together?
The scheme allows more than one eligible improvement in an application. Tell us if you want both so we can quote for a combined installation. The lender will decide what borrowing it can offer under its own criteria and the scheme rules.
Does Meeting the Scheme Criteria Guarantee Finance?
No. Even if your property and proposed installation qualify, the lender must still assess your creditworthiness and whether you can afford the loan. Approval is not guaranteed.
Will My Energy Savings Cover the Loan Repayments?
You should not assume they will. Savings depend on your home and the system you choose. Your tariff and electricity use also make a difference, so savings cannot be guaranteed to cover repayments.
How to Get Started with HeatCo
Tell us what you are planning, whether that is a solar installation, a battery or a heat pump. Include your postcode and any questions you would like us to answer.
We will get in touch to discuss the work and arrange a survey and quotation. You do not need to choose a finance option before making an enquiry.
If you would rather speak to us, call 0141 297 1234 or 01383 277 123.